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Burgan Bank, one of Kuwait’s leading banks with a regional presence in Jordan, Iraq, Algeria and Tunisia, announced today that it has entered into an agreement with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen, Turkey. Under the terms of the SPA, Burgan Bank has agreed to acquire the stake for a consideration value of TRY641mn KD99million representing 0.98x based on September 30th 2011 shareholders’ equity. In addition, Burgan Bank has also agreed to acquire an additional portfolio of Turkish loans from EFG amounting to EURO 214 million KD78million. The total consideration will be funded fully from Burgan’s existing internal cash resources. The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait CBK and Turkey’s Banking Regulation and Supervision Agency BRSA.

Eurobank Tekfen was established in 1989 by Tekfen Group as an investment and finance bank. EFG acquired a 70% stake in the Bank in 2007 to further its regional presence. As at 30 September 2011, Eurobank Tekfen had total assets of TRY5,428mn, net customer loans of TRY2,190mn, customer deposits of TRY2,075mn and shareholders’ equity of TRY660mn.The Bank has extensive geographic coverage within Turkey through its network of 60 branches.

The Turkish economy and banking sector have continued to demonstrate significant positive performance and resilience throughout the global financial crisis and offer opportunities for continued long term expansion. Turkey’s large, growing and young population, combined with strategic positioning between Europe and the Middle East offers strong potential for further economic growth in the medium-to-long term, with increasing business flows with the Middle East.

Citigroup Global Markets Limited acted as the exclusive financial advisor for Burgan Bank on this transaction

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Background information

Burgan Bank, a subsidairy of KIPCO (Kuwait Investment Projects Company), is a regional bank with majority owned subsidairies in the MENA region. The youngest and most dynamic regional commercial bank, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. Its subsidairies include Gulf Bank Algeria (Algeria), Bank of Baghdad (Iraq) , Jordan Kuwait Bank (Jordan) and Tunis International (Tunis). It has continuously improved its performance over the years by applying an extended revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market and within the MENA region. At present Burgan Bank has branches and ATMS's located across strategic locations all over kuwait.

Burgan Bank, a subsidairy of KIPCO (Kuwait Investment Projects Company), is a regional bank with majority owned subsidairies in the MENA region. The youngest and most dynamic regional commercial bank, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. Its subsidairies include Gulf Bank Algeria (Algeria), Bank of Baghdad (Iraq) , Jordan Kuwait Bank (Jordan) and Tunis International (Tunis). It has continuously improved its performance over the years by applying an extended revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market and within the MENA region. At present Burgan Bank has branches and ATMS's located across strategic locations all over kuwait.

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Memac Ogilvy started its operation in Bahrain in 1984. The company is a joint venture between Middle East Marketing and Advertising Company (MEMAC) and Ogilvy Worldwide. More...

Memac Ogilvy started its operation in Bahrain in 1984. The company is a joint venture between Middle East Marketing and Advertising Company (MEMAC) and Ogilvy Worldwide.

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